Technical Momentum Strengthens
Crude Oil futures have been range-bound since the start of August, trapped between $85 on the upside and $75 on the downside. The technical perspective shows momentum studies rising from oversold territories, with the 8-day moving average trending just above the 34-day.
DMI + crossed back above DMI -, indicating that the bull market we have seen since July may have just been catching its breath in August and will make another run at new contract highs in September.
EIA Inventories remain tight
EIA Inventory tightness remains, indicating a tighter supply picture with current EIA inventories sitting at 423 million barrels versus the five-year average of 438 million barrels for this time period. The real stress remains in the Mid-West, where Cushing stocks recorded their fourth weekly decline in the past five, showing 29 million barrels in inventory versus a five-year average of 35 million barrels.
Global Demand Remains Firm
Global demand has strengthened with the resiliency behind the U.S. economy and supportive measures from China (the world's second-largest economy). Exports from Saudi Arabia have plunged in August, leaving upside momentum to continue in September.
www.tradingview.com/cme/
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs
Disclaimers
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Crude Oil futures have been range-bound since the start of August, trapped between $85 on the upside and $75 on the downside. The technical perspective shows momentum studies rising from oversold territories, with the 8-day moving average trending just above the 34-day.
DMI + crossed back above DMI -, indicating that the bull market we have seen since July may have just been catching its breath in August and will make another run at new contract highs in September.
EIA Inventories remain tight
EIA Inventory tightness remains, indicating a tighter supply picture with current EIA inventories sitting at 423 million barrels versus the five-year average of 438 million barrels for this time period. The real stress remains in the Mid-West, where Cushing stocks recorded their fourth weekly decline in the past five, showing 29 million barrels in inventory versus a five-year average of 35 million barrels.
Global Demand Remains Firm
Global demand has strengthened with the resiliency behind the U.S. economy and supportive measures from China (the world's second-largest economy). Exports from Saudi Arabia have plunged in August, leaving upside momentum to continue in September.
www.tradingview.com/cme/
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs
Disclaimers
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.